According to Arizona Revised Statutes Section 6-901, a mortgage broker is “a person who for compensation or in the expectation of compensation either directly or indirectly makes, negotiates, or offers to make or negotiate a mortgage banking loan or a mortgage loan”. In order to become a licensed mortgage broker in the State of Arizona, all applicants must file the Arizona Mortgage Broker Surety Bond with the Superintendent of the Department of Financial Institutions. The bond ensures the faithful compliance of the licensee, including the licensee’s directors, officers, members, partners, trustees, and employees with Title 6, Chapter 9 of the Arizona Revised Statutes. Any person injured by the wrongful act of the licensee may make a claim on the bond for financial compensation.
The required bond amount is $10,000 for licensees whose investors are limited solely to institutional investors and $15,000 for licensees whose investors include any noninstitutional investors.
According to the National Mortgage Licensing System, an “institutional investor” is:
The Arizona Mortgage Broker Surety Bond remains in full force and effect until the Surety cancels the bond. The Surety must provide the Superintendent and the Principal of the bond with thirty day cancellation notices prior to the cancellation date.
All licensing fees are required by the obligee, not the surety company.
Licenses must be renewed annually.